Isoquant, Marginal Productivity Theory

9. (a) What does the shape of an isoquant show? (b) Why is this important in managerial economics? (b) Does the petroleum as an energy source have good substitutes? How is this reflected in the shape of the isoquant for petroleum versus other energy sources? Why was this important during the energy crisis of the 1970s? 11. Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hour. Using marginal productivity theory, explain how a change in the minimum wage affects the employment of unskilled labor. Problems 3. Ms. Smith, the owner and manager of the clear Duplicating Service located near a major university, is contemplating ke... click for more

Efficiency Wage Model

Efficiency Wage Model. See attached file for full problem description. Problems #2 & 3 only.

Case Study-Control Data

I have a short case study to analyze. However, I don't know how to defend my answer properly. There is no right or wrong answer, but I need to have a valid argument to the answer. In general, a clear written explanation is enough, but if you want to use graphs, numerical examples, or anything else to strengthen your argument, that is also welcome.

Chan and Cheung Argument

I would like to have your point of view on this problem. There is no right or wrong answer and I know that people will answer differently. I myself am leaning towards Chan's argument. Please let me know what you think, and please defend your answer. You can choose to agree with Cheung!!! It would be interesting to see what others think and how the argument can be defended. A clear written explanation is enough, but feel free to use graphs, numerical examples, or anything else to strengthen your argument. Two Hong Kong businessmen, Chan and Cheung, are having an argument. Chan makes the following statement: "The business world has become more competitive. If we are to compete with f... click for more

Labor Economics

Here is problems: 1. Use the marginal productivity theory of labor demand to predict the impact on the firm’s employment level of the following events. Explain why the change in employment occurs and show it in a graph. a) A decrease in the wage rate. b) An increase in the demand for the firm’s product c) A lower tariff on imported goods d) The conversion of the firm from a perfectly competitive firm to a monopolistically competitive firm 2. State whether items a – d are true, false, or uncertain, and briefly explain why. a) Diminishing marginal productivity of labor begins when the total product curve reaches a peak and then declines b) If the labor demand curve is inelas... click for more